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Reborn Coffee, Inc. (REBN)
NASDAQ:REBN
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Reborn Coffee, Inc.
(NASDAQ:REBN)
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Select Model
Rating:40Underperform
Price Target:
$2.00
▲(12.36% Upside)
Reborn Coffee, Inc. is facing significant financial difficulties, with high leverage and ongoing losses. The technical indicators suggest a bearish trend, and the valuation metrics reflect limited investor appeal due to negative earnings. The company's financial instability is the most significant factor impacting the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.
Advisory Board Formation
The new advisory board can provide strategic guidance, fostering innovation and growth, which may strengthen the company's competitive position.
Sustainability Focus
A focus on sustainability aligns with consumer preferences, potentially increasing brand loyalty and market share in the long term.
Negative Factors
High Leverage
High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, affecting long-term stability.
Negative Cash Flow
Negative cash flow indicates operational inefficiencies, requiring external financing, which could hinder sustainable growth and profitability.
Profitability Challenges
Ongoing profitability issues suggest operational inefficiencies, which could impede the company's ability to reinvest and grow over time.
Reborn Coffee, Inc. (REBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.86M
Dividend YieldN/A
Average Volume (3M)76.44K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth21.10%
EPS Growth-18.56%
CountryUS
Employees24
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.68
Shares Outstanding5,967,107
10 Day Avg. Volume54,951
30 Day Avg. Volume76,435
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.85
Price to Sales (P/S)0.81
P/FCF Ratio-1.05
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue2.37
Enterprise Value/Gross Profit4.27
Enterprise Value/Ebitda-1.45
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Reborn Coffee, Inc. Business Overview & Revenue Model
Company DescriptionReborn Coffee, Inc. (REBN) is a specialty coffee company dedicated to providing high-quality, sustainably sourced coffee products. Operating primarily in the food and beverage sector, Reborn Coffee focuses on offering a variety of gourmet coffee blends, single-origin coffees, and related merchandise through both retail and online channels. The company places a strong emphasis on eco-friendly practices and community engagement, appealing to environmentally conscious consumers.
How the Company Makes MoneyReborn Coffee generates revenue through multiple streams, including the sale of its coffee products in retail outlets, direct-to-consumer online sales, and subscriptions for regular coffee deliveries. The company also earns money through partnerships with cafes and restaurants that carry its brand, as well as through events and workshops that promote coffee education and tasting experiences. Key factors contributing to its earnings include the growing demand for premium and ethically sourced coffee, effective marketing strategies, and a loyal customer base that values sustainability.
Reborn Coffee, Inc. Financial Statement Overview
Summary
Reborn Coffee, Inc. faces significant financial challenges, with consistent losses and high leverage. While revenue is growing, profitability and cash flow generation remain problematic. The company needs to address its cost structure and leverage to improve financial stability.Income Statement
Reborn Coffee, Inc. shows a consistent increase in revenue, with a TTM revenue growth rate of 1.49%. However, the company struggles with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has decreased from previous years, reflecting potential cost management issues.35
Negative
Balance Sheet
The balance sheet reveals significant financial instability, with a negative stockholders' equity and a high debt-to-equity ratio in the TTM period. This indicates a high level of leverage and potential solvency risks. The return on equity is positive in the TTM period but is driven by negative equity, which is a concern.25
Negative
Cash Flow
The cash flow statement shows improvement in free cash flow growth, with a 25.96% increase in the TTM period. However, operating cash flow remains negative, and the operating cash flow to net income ratio is unfavorable, indicating challenges in generating cash from operations.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.66M | 5.93M | 5.51M | 3.24M | 2.28M | 793.09K |
| Gross Profit | 3.69M | 3.72M | 3.62M | 2.12M | -676.98K | -435.65K |
| EBITDA | -10.85M | -4.20M | -4.33M | -3.31M | -3.25M | -924.55K |
| Net Income | -12.76M | -4.81M | -4.73M | -3.55M | -3.44M | -1.07M |
Balance Sheet | ||||||
| Total Assets | 6.20M | 7.79M | 9.25M | 8.46M | 4.76M | 1.98M |
| Cash, Cash Equivalents and Short-Term Investments | 44.05K | 158.22K | 164.30K | 3.02M | 905.05K | 128.57K |
| Total Debt | 4.35M | 3.85M | 7.16M | 3.85M | 3.39M | 2.59M |
| Total Liabilities | 9.62M | 5.19M | 8.41M | 4.17M | 3.57M | 2.73M |
| Stockholders Equity | -3.42M | 2.60M | 846.41K | 4.29M | 1.20M | -752.40K |
Cash Flow | ||||||
| Free Cash Flow | -5.40M | -4.56M | -5.59M | -3.98M | -2.45M | -1.00M |
| Operating Cash Flow | -4.93M | -3.45M | -3.18M | -3.30M | -1.95M | -884.93K |
| Investing Cash Flow | -334.16K | -977.22K | -2.41M | -681.53K | -498.22K | -115.84K |
| Financing Cash Flow | 5.01M | 4.42M | 2.74M | 6.09M | 3.22M | 1.13M |
Reborn Coffee, Inc. Technical Analysis
Neutral
1.78
Price Trends
2.04
Negative
2.38
Negative
2.86
Negative
Market Momentum
-0.06
Negative
48.13
Neutral
47.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REBN, the sentiment is Neutral. The current price of 1.78 is above the 20-day moving average (MA) of 1.68, below the 50-day MA of 2.04, and below the 200-day MA of 2.86, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 48.13 is Neutral, neither overbought nor oversold. The STOCH value of 47.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for REBN.
Reborn Coffee, Inc. Risk Analysis
Reborn Coffee, Inc. disclosed 51 risk factors in its most recent earnings report. Reborn Coffee, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We are not in compliance with the Nasdaq continued listing requirements. If we are unable to comply with the continued listing requirements of The Nasdaq Capital Market, our common stock could be delisted, which could affect our common stock's market price and liquidity and reduce our ability to raise capital. Q4, 2023
2.
Substantial blocks of our common stock may be sold into the market as a result of the Pre-Paid Advance Agreement. Q4, 2023
3.
We do not have the right to control the timing and amount of the issuance of our shares of common stock to YA Fund under the PPA and, accordingly, it is not possible to predict the actual number of shares we will issue pursuant to the PPA at any one time or in total. Q4, 2023
Reborn Coffee, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.11B | 230.84 | 0.83% | ― | 17.27% | -76.53% | |
62 Neutral | $13.45M | 3.30 | -1.73% | ― | 21.20% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $14.14M | 11.44 | 3.85% | ― | 1.84% | 12.10% | |
48 Neutral | $9.27M | ― | -11.53% | ― | -4.16% | 29.52% | |
41 Neutral | $32.02M | -0.14 | ― | 484.75% | -5.26% | -44.78% | |
40 Underperform | $10.86M | -0.78 | ― | ― | 21.10% | -18.56% |
* Consumer Cyclical Sector Average
REBN
Reborn Coffee, Inc.
1.78
0.65
57.52%
GTIM
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FAT
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BTBD
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-5.49%
FWRG
First Watch Restaurant Group
18.17
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CHSN
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2.41
-613.59
-99.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.